Who pays the bill?

Oxfam report

The economic and social downturn forecasts for Latin America and the Caribbean are alarming. COVID-19 is hitting the region hard, which will face a 9,4% contraction, one of the most severe in the world. Inequality, informality, and insufficient healthcare resources are hindering the region's ability to cope with the pandemic. But it is the most vulnerable who bear the brunt of the cost: up to 52 million people could fall into poverty, and 40 million could lose their jobs—a setback of 15 years for the region.

But COVID-19 doesn't affect everyone equally; an elite remains immune to the contagion of the economic crisis. Since the beginning of the lockdowns, eight new billionaires have emerged in Latin America and the Caribbean—individuals with a net worth exceeding one billion dollars. The wealthiest individuals have increased their fortunes by US$48.2 billion since March 2020, equivalent to a third of the total stimulus packages distributed by all countries in the region.

To address this profound crisis, Oxfam proposes a series of reforms that would target those who have the most and have suffered the least from the pandemic. Among these is a wealth tax on the richest individuals, which could raise at least US$14.26 billion, 50 times more than what is currently being collected from this elite group of the very wealthy.

The report by Susana Ruiz and Pablo Andrés Rivero proposes urgent, necessary and bold measures, such as a tax on large fortunes, a tax on extraordinary profits during the pandemic and the enormous profits of pharmaceutical or digital corporations in this period.

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